Germany Energy Storage Market - Growth, Trends, and Forecasts (2023 - 2028)

Germany Energy Storage Systems Market Analysis

The energy storage market in Germany is expected to witness a CAGR of more than 10% during the forecast period.

The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns and delays in projects. However, the market rebounded in 2021.

• Over the medium term, factors such as the increasing share of renewables in the electricity generation mix, a decline in the cost of storage batteries and solar photovoltaic panels, supportive government policies like low-interest rates on loans, and investment grants on battery systems are driving the German energy storage market.
• On the other hand, the problem of creating adequate and intelligent power grids across the country to harness and store the growing renewable energy remains a challenge, which may hinder the growth of the market.
• However, Germany is planning to install 30 GW offshore wind energy turbines by 2030, 40 GW by 2035, and 70 GW by 2045, which may require large-scale energy storage systems, thus creating a vast opportunity for companies in the coming years.

Germany Energy Storage Systems Industry Segments

Energy storage is the process of capturing the energy produced for use at a later time to reduce imbalances between energy demand and production. A device that stores energy is generally called an accumulator or battery. 

The German energy storage market is segmented by type and application. By type, the market is segmented into batteries, pumped-storage hydroelectricity (PSH), thermal energy storage (TES), and other types. By application, the market is segmented into residential and commercial and industrial. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).

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Germany Energy Storage Systems Market Trends

Battery Systems for Storage of Renewable Energy to Witness Significant Growth

• The deployment of the battery energy storage system is anticipated to increase in the coming years due to the changes in the power sector. The country has witnessed a significant increase in renewable energy installation in recent years. Lithium-ion batteries are expected to have higher demand during the forecast period.
• With the declining costs of lithium-ion batteries, the demand for batteries registered a substantial rise for residential and commercial uses, especially in the electronics and vehicle markets. Battery costs in the country have declined by more than half, and this trend is expected to continue in the coming years.
• As of March 2021, there were over 300,000 residential battery systems in the country, with a majority of these connected to solar energy.
• With more than 58.4 GW of solar capacity and more than 63.7 GW of wind energy capacity in 2021, the requirement for a storage system is expected to grow during the forecast period.
• Such development in the renewable energy sector and reduction in battery prices are expected to significantly propel the demand for battery systems to store renewable energy.

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